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Lewis D. Solomon, The Microelectronics Revolution, Job Displacement, and the Future of Work: A Policy Commentary, 63 Chi.-Kent L. Rev.
65 (1987).
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THE MICROELECTRONICS REVOLUTION, JOB
DISPLACEMENT, AND THE FUTURE OF WORK:
A POLICY COMMENTARY
LEWIS D. SOLOMON*
I
We stand at the beginning of the Third Industrial Revolution. In
the First Industrial Revolution mankind learned to plant and harvest.
Replacing the nomadic hunter-gatherer, who spent most of his time dur-
ing the year in pursuit of food, was the farmer. By his husbandry, the
farmer was able to feed himself and several others. Those freed from the
need to feed themselves turned to making other things, to protecting the
land from their enemies, and even to framing laws. The key to the Sec-
ond Industrial Revolution was the invention of steam power which pro-
vided engines for industry and power for transportation. At the end of
the eighteenth century, machines came to replace hand-held tools as a
means of making things, and animals as a means of transportation. The
energy in wood replaced the physical energy of men and animals.
The Third Industrial Revolution is dawning. The key element is
microelectronics technology which replaces moving parts with integrated
circuits and replaces people with chips, robots, and key boards. The
microelectronics revolution substitutes energy in a mental form and can
be introduced in virtually any workplace, whether an office or factory.
The Third Industrial Revolution is destined to have a broad impact.
After surveying the impact of microelectronic technology in produc-
tion operations and offices, this article focuses on the effect of robots and
computers on employment. The introduction of new microelectronic
technology could result in the massive technological unemployment of a
growing number of workers. Millions of Americans may find that their
jobs have been automated and they will not be needed for any job.
Microelectronic technology will, therefore, have a general impact in
society.
Because of the seemingly limitless potential for the displacement of
labor by increasingly efficient machines, the effects of microelectronic
technology on the nature of work and the structure of our institutions
* Lewis D. Solomon, Professor of Law, George Washington University National Law Center.
CHICAGO-KENT LAW REVIEW
II
Microelectronics technology will impact on both office functions
and production operations. The application of computers to office work
will vastly reduce the need for human labor in producing and processing
information, specifically, in performing tasks such as filing, bookkeeping,
and typing. Information processing in the office, in other words, office
automation, will transform an office system built around paper, memos,
and bulky files. The factory of the future will be totally automated.
Three separate types of technology, computer equipment, robots, and
computer-numerically controlled machines, will be linked together in an
integrated manufacturing process. This section first considers the impact
of microelectronics technology on office functions; the impact on produc-
tion operations is then analyzed.
Advances in microelectronics have already reduced the cost and size
of computers and increased their application to office functions. Offices
have come to rely on intelligent machines, word processors and optical
character readers, which operate in isolation. 2 Microprocessor-based of-
fice machines have increased the productivity of secretaries, typists, and
other clerical workers.
Currently, microelectronics technology in the office is replacing a
paper information system, where paper is an interface medium, with the
electronic storage and transmission of information. The aim of office
automation is the development of an organization which captures infor-
mation only once and later processes, transfers, stores, and accesses the
1. For recent scholarly inquiry into the causes and consequences of technological development
see e.g., N. ROSENBERG, INSIDE THE BLACK Box: TECHNOLOGY AND ECONOMICS (1982); P.
STONEMAN, THE ECONOMIC ANALYSIS OF TECHNOLOGICAL CHANGE (1983). See generally Leon-
tief, Technological Advance, Economic Growth, and the Distribution of Income, 9 POPULATION &
DEV. REV. 403, 405 (1983).
2. See, e.g., Liebman, Super- Typewriters: The Word-Processing Industry Has Arrived, BAR-
RON'S, Mar. 31, 1975, at 11; The Office of the Future, Bus. WEEK, June 30, 1975, at 48; Reif, Word
Processing Comes of Age, N.Y. Times, May 4, 1976, § 3, at 5, col. I. See generally Giuliano, The
Mechanization of Office Work, ScI. AM., Sept. 1982, at 148.
MICROELECTRONICS REVOLUTION
3. For example, fiber optics cables provide greater telephone call handling capabilities than
coaxial cables and microwave relays. Semiconductor light sources will provide high speed telecom-
munications transmission. Riche, Impact of New Electronic Technology, MONTHLY LAB. REV.,
Mar. 1982, at 38. Computers are also used in telephone call switching and signal transmission
thereby facilitating telecommunications.
4. See, e.g., Office Automation Restructures Business, Bus. WEEK, Oct. 4, 1984, at 118; Tan-
nebaum & Bulkeley, Device Makers Dream of Electronic Offices, But Obstacles Remain, Wall St. J.,
Mar. 13, 1981, at 1, col. 1; Applications: Voice MailArrives in the Office, BUS. WEEK, June 9, 1980,
at 80. See generally Drucker, Managingthe Information Explosion, Wall St. J., Apr. 10, 1980, at 24,
col. 4.
CHICAGO-KENT LAW REVIEW
5. In lay terms, a robot reproduces a range of motions for which it has been programmed.
6. Robot Institute of America, Robotics Today, RIA NEWS, Spring 1980, at 7, quoted in
STAFF OF SUBCOMM. ON MONETARY AND FISCAL POLICY OF THE JOINT ECONOMIC COMM., 97TH
CONG., 2D SESS., STAFF STUDY: ROBOTICS AND THE ECONOMY 4 (Jt. Comm. Print 1982) [herein-
after STAFF STUDY].
7. Computerized ManufacturingAutomation: Employment, Education,and the Workplace, 50
(Washington, D.C., U.S. Congress, Office of Technology Assessment, OTA-CIT-235, April 1984)
[hereinafter OTA].
8. For example, in the mid 1980's, spot welding accounted for 35 to 45 percent of all robots
installed in the United States; handling of materials, arc welding, and paint spraying accounted for,
respectively, 25 to 30 percent, 5 to 8 percent, and 8 to 12 percent of all U.S. robots. Draper, The
Golden Arm, N.Y. REV. OF BOOKS, Oct. 24, 1985, at 46, 47. In 1980, the U.S. auto industry bought
90% of the industrial robots sold in the U.S., mostly for welding. By 1985, 5 out of every 10 robots
were sold to customers other than auto plants. Wall St. J., Aug. 8, 1985, at 1, col. 5.
9. These complex tasks include leather manufacturing, shoe manufacturing, rubber process-
ing, asbestos processing, plastics processing, and food processing. R. AYRES & S. MILLER, ROBOT-
ICS: APPLICATIONS AND SOCIAL IMPLICATIONS 59-60 (1983).
10. Draper, supra note 8, at 48. See also OTA, supra note 7, at 52, 54-56.
MICROELECTRONICS REVOLUTION
20. Id. at 43-48; R. AYRES & S. MILLER, supra note 9, at 48-57; Gunn, The Mechanization of
Design and Manufacturing, ScI. Am., Sept. 1982, at 115.
21. OTA, supra note 7, at 60, 62, 64-66, 71-74. See generally H. SHAIKEN, WORK TRANS-
FORMED: AUTOMATION AND LABOR IN THE COMPUTER AGE (1985); BUSINESS-HIGHER EDUCA-
TION FORUM, THE NEW MANUFACTURING: AMERICA'S RACE TO AUTOMATE 14-15 (1984). See
also Holusha, G.M. 'Factory of the Future' Will Run With Robots, N.Y. Times, Oct. 20, 1984, at 29,
col. 1; Broad, U.S. FactoriesReach Into the Future, N.Y. Times, Mar. 13, 1984, at Cl, col. 3; Lohr,
New in Japan: The Manless Factory, N.Y. Times, Dec. 13, 198 1, § 3, at Fl; The Speedup in Automa-
tion: Spreading Through the Factory, Bus. WEEK, Aug. 3, 1981, at 58; Findingthe Missing Link in
Automation, Bus. WEEK, June 17, 1985, at 39; Holusha, StandardizingComputer Talk, N.Y. Times,
Sept. 13, 1984, at D2, col. 1; Rowen, Japan Seizes the Lead in Robotics, Wash. Post, Apr. 10, 1983,
at Fl, col. 3; Lehner & Marcom, Auto Automation, Wall St. J., July 9, 1984, at 1, col. 6; Salisbury,
The Coming Industrial Revolution, CHRISTIAN SCI. MONITOR, Nov. 20, 1984, at 37, col. I.
22. R. AYRES & S. MILLER, supra note 9, at 84-90.
MICROELECTRONICS REVOLUTION
III
The major thrust of this article is on employment, specifically,
whether machines will completely replace human labor. As could well
be expected, the topic of whether technology creates more jobs than it
destroys divides analysts into two camps-the optimists and the
pessimists.
Optimistic observers view the microelectronics revolution with little,
if any, concern for its effect on employment. As one observer noted,
"[t]here is, of course, not a scrap of evidence in either theory or history to
suggest that technological development won't increase employment and
real incomes today just as it always has."'23 The technological optimists
reason along four lines: macroeconomic growth, benefits to individual
firms, creation of new jobs, and labor force trends.
First, and most importantly, the optimists reason that employment
in other areas of the economy will expand to provide new jobs. Aggre-
gate economic growth will generate sufficient new jobs to absorb those
displaced in other economic sectors. The development of new high tech-
nology products and services may foster economic growth which will, in
turn, create more jobs.
Second, on an individual firm level, technological change can signifi-
cantly reduce the costs of production, reduce the time needed to produce
a given unit of output, and improve the quality of goods. As a result,
total demand for a firms' output may increase. The resulting expansion
of production may increase employment at the individual firm level.
23. Bartlett, The Luddite Answer to Unemployment, Wall St. J., July 18, 1983, at 18, col. 3. See
also N. GINGRICH, WINDOW OF OPPORTUNITY: A BLUEPRINT FOR THE FUTURE 88 (1984)
("Every major technological breakthrough, from internal-combustion engines to computers, has ulti-
mately created jobs."); STAFF STUDY, supra note 6, at 3. Some experts have concluded that planning
for massive job displacement resulting from a robot population explosion, at least over the next five
to ten years, would be an inappropriate national priority. Technology and Employment: Joint Hear-
ings Before the Subcomm. on Science, Research and Technology of the House Comm. on Science and
Technology and the Task Force on Education and Employment of the House Comm. on the Budget,
98th Cong., 1st Sess. 330, 338 (1983) (statement of Marc Bendick, Director for the Program on
Economic Change and the American Workforce, Urban Institute).
CHICAGO-KENT LAW REVIEW
However, the optimists fail to mention that even if the number of jobs
increase, the requisite skill levels may significantly change. The auto-
mated factory or office needs a different, more sophisticated workforce.
Third, the automation of labor-intensive assembly line work may
bring jobs back to the United States that migrated overseas and help keep
such jobs in the United States. The decreasing fraction of the product
price attributable to labor should reduce the low wage advantage of for-
24
eign countries. Automation as found in flexible manufacturing systems
will also assist United States industries in fighting foreign competition.
Furthermore, new jobs will be created for those who will design,
build, install, program, operate and repair the new technological devices.
Additional computer programmers will be needed to program the in-
creasing number of computers and robot technicians will be needed to
test, program, install, maintain, and troubleshoot robots. 25 The contin-
ued growth of the service sector, especially health care and other per-
sonal services, may also provide future job opportunities for displaced
workers.
Finally, favorable demographic trends hearten the technological op-
timists. 26 The American labor force will increase at a smaller rate, en-
abling the economy to absorb both the new entrants and those displaced
by technology.
Pessimists view the microelectronics revolution with alarm. They
point to an adverse impact of automation on the work force. The loss of
jobs raises ominous prospects for the future, as human labor may be re-
placed by machines. One estimate places the number of unemployed at
thirty to fifty percent of the work force by the end of the twentieth cen-
tury. Demographic growth and the increasing percentage of women
seeking gainful employment may produce a higher figure in certain west-
ern nations. 2 7 This negative view of the impact of microelectronics tech-
24. See supra text accompanying note 22; cf. Feder, New Challenge in Automation, N.Y. Times,
Oct. 30, 1986, at D2, col. 1.
25. H. HUNT & T. HUNT, HUMAN RESOURCE IMPLICATIONS OF ROBOTICS 105-63 (1983).
26. For a useful introduction see Drucker, Demographics and American Economic Policy, in
TOWARD NEW U.S. INDUSTRIAL POLICY (M. Wachter & S. Wachter ed. 1981).
27. A. GORZ, PATHS TO PARADISE: ON THE LIBERATION FROM WORK 31 (1983). In G.
SCHWARTZ & W. NEIKIRK, THE WORK REVOLUTION 24 (1983), the authors estimate that after
1990, when current technology has gone through more than half its expected development, it will
take perhaps only 75% of the work force to do 100% of the work. The report of one prestigious
group states that as a result of the utilization of integrated, computer-controlled production
processes, labor requirements per unit of output will be only a fraction of current levels, conserva-
tively being reduced by a factor of one-third, in many cases, much more. BUSINESS-HIGHER EDU-
CATION FORUM, THE NEW MANUFACTURING; AMERICA'S RACE TO AUTOMATE 15-16 (1984).
Estimates point to a significant decline in employment in Western Europe as a result of the introduc-
tion of microelectronic technology. See, e.g., FearsofHigher Unemployment in Europe, Bus. WEEK,
MICROELECTRONICS REVOLUTION
Aug. 3, 1981, at 66 (one study projected that microelectronics would produce a 25% decline by 1995
in wholesale and retail trade employment in England and a 31% decline in insurance, banking, and
finance).
28. Those displaced may perform mental or physical tasks.
29. See generally I. AsIMov & K. FRANKEL, RoaOTS: MACHINES IN MAN'S IMAGE (1985).
CHICAGO-KENT LAW REVIEW
30. The increased costs consist of direct wage and fringe benefit costs and the capital required
to provide new, automated equipment.
31. The labor participation rate focuses on the number of people who want to work relative to
the size of the adult population.
MICROELECTRONICS REVOLUTION
IV
The first systematic study of the effects of computer automation on
the U.S. labor forces uses the dynamic input-output model 35 created by
nobel laureate Wassily Leontief. The input-output model constitutes a
representation of eighty-nine individual industries and fifty-three differ-
ent occupations. 36 Because the model is dynamic, it provides employ-
ment trends, output levels, and investment pictures over the years 1963
to 2000. The input-output model enables analysts to assess in greater
detail the impact of microelectronic advances on changes in the demand
for labor. As further developed in this section of the article, the potential
for job loss during the remainder of this century resulting from the diffu-
32. Key decisions of multinational corporations include, for example, the location of produc-
tion facilities.
33. Technological advances may increase the applications of microelectronics technology. The
rate of diffusion of the new technology depends on how rapidly technical, financial, and social barri-
ers to automation are overcome. Technical barriers include: lack of technical expertise to design
and implement new technologies; problems and costs of developing software to make the systems
operate efficiently; absence of the requisite standardizations; shortage of qualified persons to design,
operate, and service automated equipment and systems. Financial barriers flow from the need to
invest capital in new equipment. The adoption of microelectronics technology is not costless. The
financial barriers include: the cost of the new equipment; interest rates; the availability of capital;
short-range focus of businesses, which generally wish to recoup the cost of the equipment in three
years; capital investment considerations (cash flow position of the company and the risks involved in
investing in new equipment); and the rate of capacity utilization. The social barriers are founded on
human resistance to change. Union, managerial and institutional inertia slows the adoption of
microelectronics technology.
34. United States trade policies are designed to stimulate American exports and stem the trend
of plant relocations to overseas locations. In addition, policies which promote research and develop-
ment of microelectronics technology must also be considered.
35. For background on input-output models, see R. MILLER & P. BLAIR, INPUT-OUTPUT
ANALYSIS: FOUNDATIONS AND EXTENSIONS 1-31, 340-51 (1985).
36. W. LEONTIEF & F. DUCHIN, THE IMPACTS OF AUTOMATION ON EMPLOYMENT, 1963-
2000 3.5-3.6, 3.30-3.31 (April 1984) (Institute for Economic Analysis, N.Y. Univ.). The 89 individ-
ual industries include livestock and livestock products, coal mining, construction, apparel, printing
and publishing, petroleum refining construction and mining machinery, electronic computing equip-
ment, household appliances, motor vehicles and equipment, retail trade, insurance, eating and drink-
ing places, hospitals, and robotics manufacturing. Id. app. at 16-38.
The 53 different occupations include various types of engineers, computer programmers, medi-
cal personnel, secretaries, cashiers, plumbers, machinists, painters, janitors, and farmers (and farm
workers). Id. app. at 2-15.
CHICAGO-KENT LAW REVIEW
37. Id. at 2.1-2.14; R. MILLER & P. BLAIR, supra note 35, at 1-31, 340-51. See generally W.
LEONTIEF, THE STRUCTURE OF AMERICAN ECONOMY 1919-1939 (2d ed. 1951).
38. For example, robots, computer, and office automation equipment.
39. W. LEONTIEF & F. DUCHIN, supra note 36, at ch. 3.
40. Id. at 1.7, 3.19-3.32.
41. The A, B, and R matrices draw on input-output related studies undertaken by the U.S.
Department of Commerce, Bureau of Economic Analysis. Id. at 1.7, 3.19-3.32.
42. The L matrix uses input-output related research of the U.S. Department of Labor, Bureau
of Labor Statistics. Id. at 1.7.
MICROELECTRONICS REVOLUTION
43
ing household and government consumption, and net exports.
Since the model is dynamic, the matrices and vectors will shift over
time. In particular, the introduction and diffusion of microelectronics
technology will alter the matrices. Different industries will respond dif-
ferently to the introduction of new microelectronic technology. The ad-
44
justment of each matrix and vector requires separate studies.
Before discussing the Leontief-Duchin findings, several caveats are
in order. Historical relationships, even if correctly estimated, may be
altered by unpredictable future events. Also, the impact of the introduc-
tion and use of new technology on a particular industry may be difficult
to capture in a model.
The Leontief-Duchin projections are premised on baseline compari-
sons. For this type of analysis, Leontief-Duchin created a reference sce-
nario. 45 This reference (or baseline) scenario is premised on the
assumption that further technological innovation or automation would
not occur after 1980. Although the final demand for goods and services
by households, businesses, and governmental units was allowed to grow
between 1978 and 2000, these demand forces could only be satisfied by
the technology in existence in 1980. After constructing this baseline sce-
nario, the dynamic input-output model generated estimates for a scenario
incorporating the rapid adoption and broad use of available technologies
during the balance of the twentieth century.4 6 Thus, the impact of tech-
nology on labor demand, in the aggregate and in various occupations,
can be assessed.
Under the "rapid adoption" scenario and the intensive use of auto-
mation, 20 million fewer workers would be required to produce the same
47
level and combination of goods and services as in the baseline scenario.
Despite the potential problems raised by a shortfall in the demand for
labor of this magnitude, Leontief and Duchin offer the following caution-
ary notes:
43. The final demand vectors use information from the Bureau of Economic Analysis of the
U.S. Department of Commerce and the Bureau of Labor Statistics of the U.S. Department of Labor
together with private sector studies. Id. at 3.3-3.19.
44. Leontief and Duchin investigated the studies undertaken by the Bureau of Economic Anal-
ysis and Bureau of Labor Statistics, which cover relationships existing in the mid-1970's, to ascertain
how the matrices shifted over a number of years. These investigations were supplemented (and
updated) by specific sectorial investigations undertaken by Leontief and Duchin. Id. at ch. 3.
45. Id. at 1.10-1.11.
46. Id. at 1.11.
47. Id. at 1.15. The 20 million fewer workers equals 11.4% less labor. See also CONG. RE-
SEARCH SERVICE, 99TH CONG., 1ST SESS., THE COMPUTER REVOLUTION AND THE U.S. LABOR
FORCE, A STUDY PREPARED FOR THE USE OF THE HOUSE SUBCOMM. ON OVERSIGHT AND INVES-
TIGATIONS OF THE HOUSE COMM. ON ENERGY AND COMMERCE 10, n.11 (Comm. Print 1985).
CHICAGO-KENT LAW REVIEW
Based on the findings ... it is not yet possible to pass a final verdict on
the question of technological unemployment by the year 2000. Tech-
nological changes taken into account . . . have been limited to com-
puter-based automation. To arrive at a verdict, it will be necessary to
ascertain by means of equally detailed factual inquiry.., other types
of change that are bound to take place.... Moreover, we have explic-
itly excluded from our scenarios any major breakthroughs in computer
technology that might affect significant numbers of workers before the
year 2000. While it is likely to be at least twenty years before products
embodying future breakthroughs in areas such as automatic program-
ming, speech recognition, or robot vision are actually
48 adopted on a
large scale, some surprises are certainly possible.
Other observers draw more optimistic conclusions from these find-
ings. They point out that the more than 11% reduction in the labor
required to produce a specified level of goods and services must be bal-
anced against other forces. The rapid adoption of new technology would
permit the U.S. economy to produce more goods and services in compar-
ison to the baseline scenario. The rapid adoption scenario would also
allow personal and government consumption of goods and services to
increase in the 1980's by approximately 2% per year (after adjustment
for inflation) more than the baseline scenario and between 1.1 and 0.5%
faster in the 1990's. 4 9 The increased consumption and thus demand for
goods and services, even in the context of increasing unemployment,
could still increase the demand for U.S. labor. In short, despite the intro-
duction of new microelectronic technology, the American economy may
generate sufficient jobs to enable the aggregate demand for labor to be in
balance with the quantity of labor supplied in the year 2000.
Microelectronic advances will not uniformly impact on all parts of
the U.S. labor force. The relative composition of employment in the
United States will experience significant changes from 1978 to 2000. The
big winner would be professionals. Under the rapid adoption scenario,
professionals, who represented 15.6% of U.S. employment in 1978, could
account for approximately 20% of U.S. employment by 2000.50 In other
words, the "rapid adoption" scenario would require 21.5% more
professionals.
Production workers will also likely increase their share of the U.S.
labor force between 1978 and 2000. The employment share of crafts peo-
ple, operatives, and laborers represented 33.9% of U.S. employment in
1978. By 2000, their relative employment share could account for 37%
51. Id. at 1.17. The relative share of U.S. employment of crafts people may increase from
13.3% in 1978 to 15.0% in 2000. Id. Operatives and laborers also show relative employment gains
from 1978 to 2000 from 15.7 and 4.9%, respectively, to 16.5 and 5.5%. Id.
52. In 1978 clerical workers comprised 17.8% of U.S. employment; clerical workers' relative
share of U.S. jobs may plummet to 11.4% in 2000. Id. During the balance of this century, clerical
workers will likely experience the largest percentage decline in employment. Over 30% of the U.S.
female work force is employed in clerical occupations. Women could be particularly impacted by
the transformation predicted by Leontief and Duchin. Managers could also encounter significant
declines in their relative share, from 9.5 to 7.2%, of U.S. employment. Id.
53. Service workers who accounted for 12.4% of U.S. employment in 1978, could occupy
14.7% of U.S. jobs by 2000. Id.
54. Id.
55. Id. at 1.33-1.35.
CHICAGO-KENT LAW REVIEW
56. See Leontief, The Distribution of Work and Income, ScI. AM., Sept. 1982, at 188; Cyert,
Easing Labor's Transition Trauma, N.Y. Times, July 22, 1984, § 3, at 3, col. 1.
57. E. GOODE, SOCIOLOGY 433-54 (1984).
58. See B. BLUESTONE & B. HARRISON, THE DEINDUSTRIALIZATION OF AMERICA 55-61
(1982). The theory that middle-income jobs are being destroyed thereby threatening the very essence
of middle-class society in the United States remains controversial. See Samuelson, Demolishing a
Myth, Wash. Post, June 26, 1985, at D1, col. 1 (distribution of earnings along occupations has
remained stable); Lawrence, Stubborn Demographics: The Middle Class is Alive and Well, N.Y.
Times, June 23, 1985, § 3, at 3 (problem is demographic). See generally Kuttner, A Shrinking Mid-
dle Class Is a Call For Action, Bus. WEEK, Sept. 16, 1985, at 16. Service jobs which do not require
much specialized training have traditionally paid less than manufacturing jobs. Will the majority of
service sector jobs remain low paying or will increased capital investment in the service sector boost
productivity and wages? See generally H. BRAVERMAN, LABOR AND MONOPOLY CAPITAL (1974),
who argued that as technology advanced in the past, it was used to displace labor selectively, with
the most highly skilled, most independent, and best paid workers let go first. In the long run, com-
puter based machines are likely to displace higher order mental jobs (especially high wage jobs).
59. W. LEONTIEF & F. DucCiN, supra note 36, at 1.17. In 1978, approximately 25% of U.S.
jobs were upper level occupations, almost 38% of U.S. jobs were in the middle level and 36% were in
the lower level. Id.
60. Id. By the year 2000, projections indicate that 27% of U.S. jobs will be upper level jobs,
32.9% will be in the middle level and 40.1% will be in the lower level.
MICROELECTRONICS REVOLUTION
61. R. AYRES & S. MILLER, supra note 9, at 212-17. See also H. HUNT & T. HUNT, supra note
25, at 85, 87, 89-90 (job displacement in Michigan).
62. The term "good" jobs connotes a high level of skills, autonomy and authority.
63. The term "bad" jobs connotes a low level of skills, autonomy and authority.
64. See, e.g., Joint Hearing Before the Subcomm. on Science, Research and Technology of the
Comm. on Science and Technology and the Task Force on Education and Employment of the Comm.
on the Budget, U.S. House of Representatives, 98th Cong., 1st Sess. 634-36 (1983) (testimony of
Linda M. Lampkin, Director of Research, American Federation of State, County and Municipal
Employees, in Technology and Employment).
65. In part, the literature lacks analytical precision because skill levels are difficult to define and
measure. For instance, how do the physical skill requirements of a craft job compare with the
CHICAGO-KENT LAW REVIEW
V
The impact of the microelectronics revolution on employment and
the nature of work in the twenty-first century will result from technologi-
cal improvements which increase the application of microelectronic tech-
nology. What will happen as quantum leaps occur in the speed and
accuracy with which machines perform their tasks? The answer lies in
the realm of speculation; hopefully intelligent speculation.
mental skill requirements of a professional job? For discussion of the deskilling problem see e.g.,
Levin & Rumberger, High-Tech Requires Fewer Brains, Wash. Post, Jan. 30, 1983, at C5; Forecast-
ing: HearingsBefore the Subcomm. on Investigations and Oversight of the Comm. on Science and
Technology, 98th Cong., 1st Sess. 76-80 (1983) (statement of Judith Gregory, Research Director, 9 to
5, National Association of Working Women). For robot operators, the incongruency between job
activities of monitoring and worker preference may generate boredom and stress. R. AYRES & S.
MILLER, supra note 9, at 95. See also Glenn & Feldberg, ProletarianizingClerical Work- Technol-
ogy and OrganizationalControl, in CASE STUDIES IN THE LABOR PROCESS (A. Zimbalist ed. 1979);
H. MENZIES, WOMEN AND THE CHIP: CASE STUDIES OF THE EFFECTS OF INFORMATICS ON EM-
PLOYMENT IN CANADA (1981). The monitoring of each word processing operator's output and
instantaneously comparing productivity among workers is examined in Arnold, Birke, & Faulkner,
Women and Microelectronics: The Case of Word Processors, 4 WOMEN'S STUD. INT'L Q. 321 (Fall
1981). Furthermore, high technology industries provide jobs with little or no knowledge of high
technology, i.e., clericals, secretaries, assemblers, and warehouse personnel. In the electronic com-
ponents industry, for example, 15% of the workers were employed in engineering, science and com-
puter occupations in 1980; the majority were assigned to low-wage assembly work. Riche, Hecker,
& Burgan, High Technology Today and Tomorrow. A Small Slice of the Employment Pie, 106
MONTHLY LAB. REV. 50, 54 (Nov. 1983).
MICROELECTRONICS REVOLUTION
66. OTA, supra note 7, at 89-92; R. AYRES & S. MILLER, supra note 9, at 60-63, 319-33;
Holusha, Robots That 'See' and 'Feel',N.Y. Times, June 6, 1985, at D2, col. 1.
67. W. LEONTIEF & F. DUCHIN, supra note 36, at 4.41. See also R. AYRES & S. MILLER, supra
note 9, at 72-73; Buss, High-Tech Track, Wall St. J., Apr. 13, 1983, at 1, col. 6. Offsetting this
worker displacement is the need for robot technicians. One robot technician may be required for
each six robots per shift. W. LEONTIEF & F. DUCHIN, supra note 36, at 4.41. See also Freedman,
Behind Every Successful Robot Is A Technician, N.Y. Times, Oct. 17, 1982, § 12, at 34, col. 3. In
two shift operations, two robot technicians are required for every six robots.
68. Draper, supra note 8, at 46, 50. The greater displacement rate results from the increased
productivity and flexibility of future robots.
69. Id.
70. E. FEIGENBAUM & P. MCCORDUCK, THE FIFTH GENERATION: ARTIFICIAL INTELLI-
GENCE AND JAPAN'S COMPUTER CHALLENGE TO THE WORLD (1983). See also OTA, supra note 7,
at 83-87.
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ing inferences and offering conclusions) and will be able to interact with
people using natural language and pictures. Compared to today's com-
puters, the next-generation computers will be what automobiles are to
bicycles. Once computers surpass humans, they will be capable of their
own design and will be reproductive. To a large extent, microelectronics
will replace human minds in the Third Industrial Revolution, just as
steam replaced human muscle in the Second Industrial Revolution.
The advances in and the diffusion of microelectronics technology in
the twenty-first century point to ever increasing job displacement. As
robots become more advanced and offices become more automated the
labor force displacement impact could be enormous. The number of fac-
tory and office workers needed for the production of most goods and
services will become insignificant. Automation of the factory and office
will reduce the necessary work time. A worker who loses his or her job
in one industry will not necessarily find employment in another industry.
The long-term technological unemployment will be characterized by a
bigger proportion of the labor force being incapable of fitting into the
economic process because it lacks the literacy and math skills to work
with the new technology. Low wage scales abroad, cheap communica-
tions, and the rapid diffusion of technology may render U.S. labor-inten-
sive industry unable to grow fast enough to absorb the unemployed.
In Western society, work has traditionally been the basis of status,
and the measure of an individual's worth. What will happen as work
becomes less available? A society with excess productive capacity and
plentiful labor is unable to attain its goal of full employment. Studies
have indicated the adverse impact of unemployment on an individual is
manifested in terms of negative feelings of self-worth and a loss of self-
esteem, destruction of an individual's concept of his social and economic
roles in society, and an increase in boredom, social strife and political
71
and economic alienation.
If the concept of work becomes meaningless in several generations,
one of three scenarios may unfold: (1) free market; (2) Keynesian; or
(3) human needs. 72 In the free market approach, there is no change in
societal values and no government intervention in the market, resulting
in a decrease in the overall quality of life. The Keynesian approach ad-
71. Much evidence links unemployment to emotional problems, alcoholism, drug use, and
crime. See, e.g., M. AIKEN, L.A. FERMAN, & H.L. SHEPART, ECONOMIC FAILURE, ALIENATION,
AND EXTREMISM (1968); L.A. FERMAN & J. GARDNER, ECONOMIC DEPRIVATION, SOCIAL MOBIL-
ITY AND MENTAL HEALTH (1979).
72. Various scenarios are developed by A. GORZ, PATHS TO PARADISE: ON THE LIBERATION
FROM WORK (1983); J. ROBERTSON, THE SANE ALTERNATIVE: A CHOICE OF FUTURES (rev. ed.
1983).
MICROELECTRONICS REVOLUTION
76. The government would, however, face the need to define the term "household" and then
police this limitation.
77. See generally J.M. KEYNES, THE GENERAL THEORY OF EMPLOYMENT, INTEREST, AND
MONEY (1936).
78. A. GORZ, supra note 72, at 32. See generally H. MARCUSE, ONE DIMENSIONAL MAN
(1964).
MICROELECTRONICS REVOLUTION
79. A. MASLOW, MOTIVATION AND PERSONALITY (2d ed. 1970) [hereinafter MOTIVATION];
A. MASLOW, TOWARD A PSYCHOLOGY OF BEING 30 (1968) [hereinafter PSYCHOLOGY]. Maslow
divided the hierarchy into deficiency motivated needs (physiological, safety, belonging, love, respect
and self-esteem) and growth motivated needs. Maslow notes, "[i]t is these [deficiency motivated]
needs which are essentially deficits in the organism, empty holes, so to speak, which must be filled up
for health's sake, and furthermore, must be filled up from without by human beings other than the
subject, that I shall call deficits or deficiency needs." PSYCHOLOGY, supra, at 22-23. The deficiency
needs are best known to psychologists because their frustration produces psychopathology. MOTI-
VATION, supra, at 2. The self-actualizers, motivated by growth needs, search for what Maslow called
"being" values and may encounter peak (transcendent, mystical) experiences in which, they re-
ported, larger meanings subsumed the self and its boundaries and limitations. MOTIVATION, Supra,
at 149-80.
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81. Personal skill development could occur in a variety of areas, including arts, sports, and
continuing education.
82. Social activity could include greater participation in society's economic and political
spheres.
83. INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, THE ORIGI-
NAL REBUILDING AMERICA ACT 202-04 (1984) (proposing the imposition of a tax on machinery,
equipment, robots and production systems that displace workers and cause unemployment).
84. Perhaps society could arrive at a consensus with respect to basic human needs. A necessary
minimum might include "food sufficient in quantity and kind for health, palatable but without vari-
ety, uniform clothing adequate for all seasons, shelter on an individual, family and group basis, with
adequate conveniences for different environments; medical services and transportation." P. & P.
GOODMAN, COMMUNITAS 200-01 (2d ed. 1960). See also infra note 86.
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85. See generally ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT, NEGA-
TIVE INCOME TAX: AN APPROACH TO THE COORDINATION OF TAXATION AND SOCIAL WELFARE
POLICIES (1974). Advocates' thoughts of a guaranteed lifetime income in the form of a negative
income tax may be based on a desire to simplify and reduce government activity. M. FRIEDMAN,
CAPITALISM AND FREEDOM 190-95 (1962).
The guaranteed lifetime income system may also provide the basis for positive receptivity to
technological change. When it becomes apparent that the new technologies will affect more workers,
a general resistance to change may occur; the power of the resisters may increase. Human resistance
may take the form of stalling the process of change or imposing unreasonable penalties on it. Resist-
ance will prove self-defeating because firms will become noncompetitive and go out of business.
86. Basic necessities include durable, repairable goods and services which are functional and
economical in terms of the inputs of labor and natural resources. See also supra note 84.
87. A. GORZ, supra note 72, at 41.
MICROELECTRONICS REVOLUTION
88. The development of interests and skills could include, for example, sports, arts, music, or
volunteer activities.
89. See H. MARCUSE, EROS AND CIVILIZATION (1955) for the development of the view of an
effortless utopia in which technology replaces all necessary activity. For Marcuse, by eliminating the
"surplus repression" resulting from the social organization of labor imposed in the interest of domi-
nation, the entire body could again become a source of pleasure (polymorphous perversity). In the
new order, life becomes a spontaneous endeavor, where human bodies become organs of pleasure
with greater intensity and a variety of erotic experience. See also R. RICTA, CIVILIZATION AT THE
CROSSROADS (1969); D. RIESMAN, THE LONELY CROWD ch. XV (rev. ed. 1961) (autonomy in the
post-industrial world could be found in leisure, not work).
90. See, e.g., Dubin, Industrial Workers' Worlds: A Study of the 'Central Life Interest' ofIndus-
trial Workers, 3 Soc. PROBS. 140 (1958) (study of workers' central life interest in terms of expressed
preference for a given locale or situation in carrying out an activity. Although the workers evi-
denced a sense of attachment to their work and workplace, they were not committed to it. For three
out of four industrial workers surveyed, their self-actualization came in institutional settings outside
their work organization).
91. A. TOFFLER, THE THIRD WAVE ch. 20 (1980).
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time, we may be back to the free market scenario, sketched earlier. This
scenario is characterized by the development of a technical elite which
controls and understands the new automated factories and offices. The
elite may keep the remainder of the population in a state of submissive
ignorance, thus impeding the realization of individual self-fufillment.
Based on the present use of leisure (that is, non-work) time, the
promise of considerably more free time appears less than encouraging as
a means for human growth and development. Today, many workers
crave leisure as a means of relaxation and regeneration-through the
elimination of mental and physical fatigue-from the uniformity and
fragmentation of jobs. As a mode of compensation for the nature of
work, it appears insufficient for individuals to be employed and to be
linked to life through leisure-time consumership. The pursuit of leisure
through passive activities dominated by consumption and the machinery
of amusement illustrates the illusory possession of non-work time. Lei-
sure has become organized, administered, institutionalized and commer-
cialized, spurring, in conjunction with the mass media and advertising,
the consumption that business so assiduously cultivates. 92 Rather than
achieving self-realization, many individuals kill time through monoto-
nous diversions. Intellectual capacity or excitement atrophies as gadgets
fill the emptiness of time. Education can, however, alter leisure pat-
terns. 93 Lifelong learning may come to be the form of education that
makes the most sense. Implicit in the human needs approach is the vi-
sion of people leading more educationally-oriented and less gadget-rid-
den lives.
Change may come voluntarily. As material goods are available to
more people, consumption may be satiated and items may lose their posi-
tions as status symbols. 94 However, new items may become future status
92. See Seligman, On Work, Alienation, and Leisure, 24 AM. J. ECON. & Soc., 337, 356-60
(1965); DE GRAZIA, OF WORK, TIME AND LEISURE (1964). C.W. MILLS, WHITE COLLAR 238
(1958) notes that work is made completely subservient to leisure for "leisure is the way to spend
money, [while] work is the way to make it. When the two compete, leisure wins hands down." A.
KORNHAUSER, MENTAL HEALTH OF THE INDUSTRIAL WORKER: A DETROIT STUDY 199-203,
266-67, 271 (1965) portrays the barrenness of leisure. One-half of the workers surveyed had no
hobby or special interest to occupy their spare time. Active and meaningful leisure was reported by
less than 15% of the workers surveyed. The workers, in groping for meaningful ways to fill spare
time without a conception of the possibilities, emphasize consumption, not self-development.
93. See Wilensky, Mass Society and Mass Culture: Interdependence or Independence, 29 AM.
Soc. REV. 173 (1964) (leisure styles of men with a short-hourwork day consists of compulsive ab-
sorption of large amounts of shoddy television as a time filler through a retreat to escapist violent
programs, but the great majority of men with a high quality college education display high leisure
competence).
94. Blumberg, The Decline and Fall of the Status Symbol. Some Thoughts on Status in a Post-
Industrial Society, 21 Soc. PROBS. 480, 486, 496-97 (1974).
MICROELECTRONICS REVOLUTION
CONCLUSION
95. Society must, of course, reach a consensus as to whether the government should promote or
restrict consumption.
96. P. & P. GOODMAN, supra note 84, at 200-01.
97. E. FROMM, THE REVOLUTION OF HOPE 124 (1968). See also P. & P. GOODMAN, supra
note 84, at 212-13.
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